Calendar Reference: See Summary below for explanation of exception
to calendar requirement.

Proposal Number: PRN 2009-251.

Submit comments by October 16, 2009 to:

Legalized Games of Chance Control Commission

c/o David M. Szuchman, Acting Executive Officer

124 Halsey Street

P.O. Box 46000

Newark, New Jersey 07101

The agency proposal follows:

Summary

N.J.A.C. 13:47-13.6 requires a licensed distributor of electronic games
of chance systems, or a licensed organization if it owns the equipment,
to pay a fee of $ 25.00 for each bingo occasion on which electronic card
minding devices are used. This fee covers the first 10 electronic card
minding devices used at the occasion. The rule requires a distributor
or licensed organization to pay $ 10.00 for each additional 10 devices
used at the occasion. The Legalized Games of Chance Control Commission
(Commission) has been approached by distributors and qualified organizations
that hold bingo occasions who claim that the additional fee of $ 10.00
is significantly impacting the proceeds from bingo games and that this
fee is dissuading organizations from offering electronic games of chance
systems at bingo occasions. The Commission has reviewed these claims
and agrees that the additional $ 10.00 fee per 10 additional units is
impacting proceeds and discouraging the use of electronic games of chance
systems. The Commission has also determined that the additional $ 10.00
fee does not significantly contribute to its operating budget and that
the initial $ 25.00 fee adequately covers the expenses the Commission
incurs in regulating the use of electronic games of chance systems. The
Commission proposes to amend N.J.A.C. 13:47-13.6 to delete the $ 10.00
fee for every additional 10 electronic devices used at a bingo occasion.
A distributor who provides electronic games of chance control systems
for a bingo occasion or the licensed organization owning the equipment
will be required to pay only the initial $ 25.00 fee, regardless of how
many devices are used.

N.J.A.C. 13:47-13.6 further requires that fees paid by distributors
for the use of electronic card minding systems be paid no later than
the 10th day of the month immediately following the month in which the
system was used in a bingo occasion. This deadline has proven to be difficult
for distributors to meet. The Commission proposes to amend N.J.A.C. 13:47-13.6
to increase this deadline from the 10th day of the succeeding month to
the last day of the succeeding month.

The Commission has determined that the comment period for this notice
of proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5,
this notice is excepted from the rulemaking calendar requirement.

Social Impact

The Commission believes that the proposed amendment will have a beneficial
impact on qualified organizations that hold bingo occasions, and the
educational, charitable, patriotic, religious or public-spirited purposes
they support. Reducing the fee to use electronic card minding systems
is expected to encourage their use. The Commission believes that such
systems make bingo games more attractive to younger people and may aid
experienced players by facilitating their play of multiple boards. The
proposed amendment may encourage them to play bingo and increase the
proceeds that qualified organizations receive from holding bingo occasions.

Economic Impact

The proposed amendment will have a positive economic impact on distributors
of electronic games of chance systems and qualified organizations that
use such systems for bingo occasions. Reducing the fee for using such
systems may reduce the charges imposed by distributors, thus increasing
proceeds from bingo occasions. The Commission also anticipates that decreasing
the fee will encourage more qualified organizations to use these systems,
making bingo games more attractive to players and increasing the number
of people who play bingo. This anticipated increase in players will have
a positive economic impact on qualified organizations.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendment
is governed by N.J.S.A. 5:8-6 and is not subject to any Federal requirements
or standards.

Jobs Impact

The Commission does not believe that the proposed amendment will increase
or decrease the number of jobs in New Jersey.

Agriculture Industry Impact

The Commission does not believe that the proposed amendment will have
any impact on the agriculture industry in the State.

Regulatory Flexibility Statement

Although distributors of electronic games of chance systems tend to
be large enterprises, there may be some manufacturers that may be considered "small
businesses" under the Regulatory Flexibility Act, N.J.S.A. 52:14B-16
et seq. (the Act). In addition, licensed organizations owning equipment
may be considered small businesses.

The proposed amendment does not impose any compliance, reporting or
recordkeeping requirements.

Smart Growth Impact

The Commission does not believe that the proposed amendment will have
an impact upon the achievement of smart growth or upon the implementation
of the State Development and Redevelopment Plan.

Housing Affordability Impact

The proposed amendment will have an insignificant impact on affordable
housing in New Jersey and there is an extreme unlikelihood that the rule
would evoke a change in the average costs associated with housing because
the proposed amendment concerns fees for the use of electronic card minding
devices used in bingo occasions.

Smart Growth Development Impact

The proposed amendment will have an insignificant impact on smart growth
and there is an extreme unlikelihood that the rule would evoke a change
in housing production in Planning Areas 1 or 2 or within designated centers
under the State Development and Redevelopment Plan in New Jersey because
the proposed amendment concerns fees for the use of electronic card minding
devices used in bingo occasions.

Full text of the proposal follows (additions indicated in boldface thus;
deletions indicated in brackets [thus]):

(i) Each licensed distributor of electronic games of chance systems,
or, if a system is owned by a licensed organization, the licensed organization,
in addition to the use fee required under N.J.A.C. 13:47-4.9, shall pay
a fee for the use of the electronic games of chance systems as follows:

1. For use of electronic card minding systems, a $ 25.00 fee, in the
form of a check payable to the Legalized Games of Chance Control Commission,
for each occasion on which electronic card minding devices are used in
the conduct of games of chance. [If more than 10 electronic [page=3033]
card minding devices are used on an occasion, an additional $ 10.00 shall
be paid for each additional 10 electronic devices, or any fraction thereof,
used.] The fee shall be paid no later than the [10th] last day
of the month immediately following the month in which the electronic
card minding system was used for the holding, operating or conducting
of bingo games together with a statement disclosing: